(Trenton/281)

quote:

---

McAllenDave Dave Hendricks
Major construction, new anchor stores planned for #Edinburg's Shoppes at #RGV says Connecticut developer Neil Ellis.

---

quote:

---

McAllenDave Dave Hendricks
#Edinburg's Shoppes at #RGV set rent for Ross stores at $25,000/month, according to SEC filings

---

http://www.themonitor.com/articles/edinburg-49205-plaza-rgv.html

quote:

---

EDINBURG — The Connecticut-based developer behind The Shoppes at Rio Grande Valley has announced plans to build a 90,000-square-foot expansion next to J.C. Penney.

First Hartford sold land to McDonald’s for a restaurant along Trenton Road and will build the expansion west of J.C. Penney, said Paul Rappaport, the development’s general manager. Anna’s Linens, GNC and Petco will occupy the new space, which should be open for business during 2012.

“These things, the way they work, once you start building momentum, they build themselves,” said Pedro Salazar, executive director of Edinburg’s Economic Development Corporation.

With the expansion, the Shoppes will have 428,000 square feet of retail space anchored by J.C. Penney, Academy Sports + Outdoors and Burlington Coat Factory. Together, the three anchors occupy 78 percent of existing retail space, according to First Hartford’s most recent annual report filed with the Securities and Exchange Commission.

At one time, concept drawings for The Shoppes showed a pedestrian-friendly outdoor mall with an urban feel, resembling a condensed version of Palms Crossing in McAllen. A more recent design show stores arranged in a huge loop around a massive parking area.

First Hartford eventually plans to build 1.1 million square feet of “gross leasable area,” an industry term encompassing everything from retail to office space, according to a company brochure. With less than a third of the project completed, the development’s final look hasn’t been determined.

“But the flexibility of a property like this is huge, and the location is obviously ideal,” Rappaport said.

If The Shoppes, which First Hartford opened in 2008, eventually reaches 1.1 million square feet, the complex will be within striking distance of McAllen’s La Plaza Mall, which boasts 1.2 million square feet and also features J.C. Penney. McAllen’s leaders have been talking with Simon officials about an expansion there for years, but haven’t announced anything concrete.

Adding more anchors and retail space also will help First Hartford collect from existing tenants.

Ross Stores signed a lease with First Hartford, contingent upon an unspecified number of anchor stores and square feet leased. Until First Hartford fulfills those requirements, Ross Stores will not have to pay its $25,000 monthly rent. In August, when First Hartford filed its annual report, Ross Stores wasn’t paying rent.

First Hartford President Neil H. Ellis said more anchor stores are on the horizon, with announcements coming this summer.

Asked why First Hartford, headquartered in Manchester, Conn., decided to open a mall in the Rio Grande Valley, where his company’s perhaps most notable experience was as preferred developer for CVS pharmacies, Ellis was blunt.

“Why not?” Ellis said. “It’s a very hot market.”

Edinburg’s retail sector, less reliant on Mexican shoppers than McAllen’s, held steady during the recession and the rocky economy that followed.

Edinburg’s gross retail sales rose from nearly $670 million during 2007 to nearly $762 million during 2008 and remained flat during 2009, according to the Texas Comptroller for Public Accounts. While fourth-quarter data for 2010 hasn’t been released, the first three quarters showed strong growth.

The Shoppes accounted for an estimated 12 percent to 15 percent of Edinburg’s total during the past two years, said Salazar, the development corporation director.

It’s still a small slice of Hidalgo County retail, which accounted for $7.5 billion in gross sales during 2009. McAllen continues to dominate the retail game, with $3.2 billion in sales during 2009.

Located near Edinburg’s southeastern corner, The Shoppes may help lure customers from nearby McAllen, Pharr and San Juan. On a given weekend, at least 20 percent come from Mexico, Rappaport said, basing his estimate on license plates and data from retailers. That number roughly doubles during the holiday season.

---

It is a nice shopping area and the traffic never seems to be bad. I like to go to the Academy store there. It is about a mile from my house so the more stuff they put in there the better I will like it. It says it is about 1/3 the size of La Plaza, but I wonder how it compares with the the shopping area north of Trenton and 10th street? (Target to Best Buy)